Myanmar’s First Crypto Bank: Spring Development Bank

Myanmar is set to witness the launch of its first-ever crypto-based banking institution, the Spring Development Bank, scheduled for a soft launch on July 22. This groundbreaking move could provide the country’s shadow government, the National Unity Government (NUG), with increased access to financial services and funding. The bank derives its name from the Spring Revolution, the opposition movement led by the NUG against the ruling military junta known as the State Administration Council (SAC), which seized power in February 2021.

Myanmar's first fully cryptocurrency-based banking institution, Spring Development Bank, announced that it will trial run on July 22. Based on Polygon, the bank will issue a variety of new stablecoins linked to fiats. The bank is launched with the support of the Burmese…

— Wu Blockchain (@WuBlockchain) July 20, 2023

Myanmar’s First Crypto Bank Launches

The Spring Development Bank aims to serve not only the 55 million Burmese citizens residing within Myanmar but also the significant Burmese diaspora, estimated to be two million strong, living and working outside the country. Many of these diaspora members frequently remit money back to Myanmar, making them a vital target demographic for the crypto bank.

Built on the Polygon blockchain, the bank’s primary objective is to facilitate faster and more efficient domestic and international payments. Additionally, it aims to offer international access to a wide range of financial products. A representative of the Spring Development Bank, requesting anonymity for security reasons, explained that cryptocurrencies were the natural choice to provide financial support to both Burmese citizens and the exiled government.

Calvin T, the CEO of the bank, emphasized that this launch represents the first step toward restoring financial freedom in Myanmar. Tin Tun Naing, the governor of Myanmar’s interim central bank and acting minister for finance and industry, hailed the bank as a fundamentally “revolutionary” institution. He stated that the military-controlled financial system was crumbling, and the Spring Development Bank would provide a trustworthy alternative guaranteed by the government.

Traditionally, sending money to Myanmar incurs hefty fees, with some reaching as high as 30%. The Spring Development Bank aims to address this issue by providing a cost-effective solution built on the Polygon ecosystem, chosen for its long-term viability. The bank will introduce several new fiat-pegged stablecoins, including the Myanmar kyat, Thai baht, Singapore dollar, and the U.S. dollar. Users can utilize the bank’s “currency swap” feature, based on UniSwap V3, to exchange these stablecoins seamlessly.

Given the precarious political situation in Myanmar, where supporting the NUG can lead to violent repercussions, the bank’s user interface has been designed as a web-only platform. Users are encouraged to access the bank using incognito windows to avoid storing any browsing history, ensuring their safety and privacy. Notably, on December 31, 2021, the NUG declared Tether, a U.S. dollar-pegged stablecoin, as legal tender to expedite international trade. While the NUG has received recognition from various international bodies, the United States has yet to formally recognize the exiled government.